Lead Investor Primer

## What is a Lead Investor? The Lead Investor is an investor who is familiar with the startup and decided to invest on the same terms as those offered on Wefunder. More importantly, the Lead Investor directs the voting power of all Wefunder investors and can take other actions on behalf of investors. When deciding whether to invest in a company, you should look at who the Lead Investor is, see how much they invested and why, and make your own decision on if you trust their judgement. *Note that Wefunder does not endorse the views or activities of any Lead Investor and our approval of a Lead Investor does not constitute an investment recommendation.* ## What does a Lead Investor do? The Lead Investor: 1. Decides if they want to invest on the same terms as those offered on Wefunder. 2. Directs the signing of documents on behalf of all investors on Wefunder, such as SAFEs converting to equity, follow-on financing authorizations, acquisitions, or any other corporate action. These are the same documents a Lead signs for their personal investment. ## Do other investors have voting rights? When voting rights are offered, they are directed by the Lead Investor. ## Can a Lead Investor be fired? Yes. If there is evidence of behavior that is in bad faith or a serious conflict of interest, Wefunder can intervene in extraordinary circumstances. Depending on the circumstances, Wefunder can remove the Lead Investor, organize a vote of all Wefunder investors on whether to remove the Lead Investor, and/or organize a vote of all Wefunder investors on a particular voting decision for which the Lead Investor has a conflict of interest. ## Are Lead Investors paid? No, they won't be compensated for their role as a Lead Investor. But, they may be appointed as portfolio manager to an SPV formed by Wefunder in a future Reg D round, for which they could receive carried interest.